Real Reform Louisiana delivers tiki torches to LABI after claims of lower auto insurance rates have yet to materialize

Real Reform Louisiana delivered tiki torches to the Louisiana Association of Business and Industry’s office in Baton Rouge because auto insurance rates have yet to decline as a result of the tort reform legislation approved last year. Real Reform Louisiana’s executive director Eric Holl says rates have actually gone up.

“By some estimates, they’ve gone up significantly 15-18%, State Farm which is the largest insurer in the state has raised rates,” said Holl.

So why tiki torches? Holl says last year LABI President Stephen Waguespack told radio talk show host, Erin McCarty of KEEL Radio, in Shreveport that he would grab a tiki torch and go to the Capitol if rates did not go down as a result of legislation that changed the way civil courts handle car crash cases.

“These guys will say or do anything to help big insurance companies make more money at the expense of regular people,” said Holl.

Holl says the tort reform bill approved last year only helps insurance companies make more money. He would like to see Waguespack follow up on the promise he made a year ago.

“It’s time for the big corporate lobbyists who try to play behind the scenes who make promises and don’t expect anybody to follow up on them, to have to answer for the promises they made to use and the Legislature,” said Holl.

Here is a statement from Waguespack.

Tort reform legislation passed last year is already paying off for Louisiana drivers, as new insurance companies and underwriters have entered the market and consumers such as the Louisiana loggers are reporting lower rates being offered to some of their drivers. This despite the fact the legislation has not even been allowed to go into full effect yet due to the Louisiana Supreme Court halting jury trials all of last year and parts of this year due to Covid-19. Thankfully, we are seeing this moratorium finally lifted in parts of the state.

Additionally, the criminal investigation and indictments being handed out now to several attorneys who were caught staging fake wrecks for insurance fraud should also help bring these perpetrators to justice and lower costs. Next year, if the market is not yet where it needs to be more aggressive tort reform may be necessary.